Notice Board 2016

FMO boosts financial sector in Nepal

FMO’s investment in NMB Bank Limited will contribute to financial sector development creating a bigger platform for strengthening the financial support for the renewable energy sector in Nepal

KATHMANDU, WEDNESDAY, NOVEMBER 23, 2016
FMO, the Dutch development bank has increased its stake in NMB Bank Limited in Nepal. FMO increased its equity investment in the company from 3% to 20%. The investment will contribute to the strengthening of the financial sector in Nepal.

In October 2015, NMB merged via a share swap with FMO’s investee Clean Energy Development Bank Limited (CEBDL) and two smaller banks Bhrikutee Development Bank Limited and Pathibara Bikas Bank Limited and Prudential Finance Company Limited. The merger was strongly driven & supported (for more than 4 years) by FMO through intensive and persuasive guidance by its nominee board directors and shareholders’ representatives with the intension to create a bigger platform for strengthening the financial support for the renewable energy sector in Nepal. After the merger FMO’s stake diluted from 14% to 3%. This transaction entails an additional equity investment increasing FMO’s stake to 20%.
This investment s of strategic importance as it allows FMO to further contribute and strengthen the financial sector (rural and urban) and indirectly continue to support the renewable energy in Nepal. FMO will continue to create value to NMB by providing guidance in the challenging integration progress and with further fine -tuning its new strategy. Also FMO will assist NMB to become market leader in managing environmental & social risks and will continue to strengthen NMB’s corporate governance through a substantial technical assistance programme.

Linda Broekhuizen, Chief Investment Officer of FMO said: “FMO is proud to be a pioneer DFI investor to actively support the financial sector in Nepal, thereby enabling much needed investments in the renewable energy sector decreasing CO2 emissions, while helping this beautiful country grow its economy“.

Speaking on the occasion, Pawan Kumar Golyan, Chairman, NMB Bank said“This is an important milestone for NMB Bank, which positions the Bank with stronger foothold in supporting projects that will not only impact the industry segments that we invest in, but will also be a catalyst in shaping economic growth in the country,”

FMO has been active in Nepal for many years and has been building on its reputation, network and relation with the Central Bank of Nepal (NRB) since it invested in Clean Energy Development Bank in 2008. NMB recently became member of the Global Alliance for Banking on Values and is very eager to reap the benefits of FMO’s international network.

NMB Bank Ek Ghar Ek Khata (14.09.2016)

According to NRB account statistics, only about 40 % of the total populations of Nepal, have deposit accounts in Banks, signifying that more than half the population is out of formal financial access. As per the latest study conducted by Nepal Rastra Bank (NRB), it shows that 85 – 90 % of the working age group in rural areas do not have deposit accounts with commercial banks.

The main reasons behind the financial exclusion are:

Lack of information:

Lack of information about the role and function of banks, banking services and products, interest rates, etc. discourages people from including themselves in mainstream banking.

Lack of awareness:

Many people are unaware of the banking terms and conditions laid down by banks and regulators from time to time.

Illiteracy:

Because of illiteracy, a substantial number of people are unable to take course to banking services.

NMB Ek Ghar Ek Khata is an endeavor of the bank to reach every citizen of the country and bring them into the banking channel for a better future by inculcating savings habit. It is an attempt from the Bank to support the government’s endeavor to ensure financial inclusion for every Nepali citizen. As the name states, NMB Ek Ghar Ek Khata targets to ensure that every households has at least one bank account with NMB Bank. The campaign will be supported through various financial literacy programs, door to door marketing programs and promotional activities across the country.

NMB Ek Ghar Ek Khata Campaign on a broader perspective is an effort to make every Nepali household financially literate whereby accelerating economic well being at a macroeconomic scale. The campaign will run across the country and will be supported by various financial literacy programs and activations.

The campaign was launched in Shrawan 2073 and is now in its second phase. Organizing a press meet on 14th September 2016, Mr. Rajesh Hamal was announced as the face of the campaign. Mr. Hamal is well known for his involvement in various social campaigns. Given his immense popularity and fan following across the country, he will be able to effectively communicate the message of the campaign to Nepalis from all walks of life.

NMB Bank VISA Debit Card discount scheme (08.06.2016)

NMB Bank has announced the launch of NMB Bank VISA Debit Card scheme which offers 5% discount on every purchase made through its Debit Card at Bhatbhateni Super Market (BBSM) outlets across the country.

“This is an effort to enhance our customer experience by providing something extra for our valued customers. The scheme will be available to the Bank’s existing as well as new customers. ” said a statement issued by the Bank.

NMB Bank Limited successfully accomplished financial closure of Marriott Deluxe Five Star Hotel located at Nag Pokhari, Kathmandu under its lead with the participation of Prabhu Bank Limited and Nepal Bangladesh Bank Limited. The project is being constructed at the total cost of Nepalese Rupees 4 billion and the consortium banks have provided total financial commitment of Nepalese Rupees 3.2 billion to fund the project.

The hotel shall be one of its kind in Nepal with a capacity of 230 rooms and other facilities such as Swimming pool, Casino, Mini Golf, Conference Hall, Banquet Hall, Health club, Spa spread over 12 ropanies of land at the heart of the city.

The hotel is expected to come into operation by mid 2018 and will be operated under the franchise of 'Marriott'- a US based chain of international hotels.

NMB Bank organized a client interaction program on Trade and Treasury at Hotel Annapurna on May 6, 2016. The program was directed to a group of clients having large Trade and Treasury transactional relationships with the Bank. The program, designed to facilitate clients in their daily transactional requirements, was well received by the attendees who expressed satisfaction on the way the program was conducted. “Programs like this help us in gaining better understanding of the products offered and the Bank’s effort in helping us do that is much appreciated”, said a client attending the program.

In line with the Bank’s current corporate campaign of “Aatmanirvhar Nepal”-to encourage self reliance for economic growth, NMB Bank has plans to carry out similar interaction program in the near future for other group of clients to share knowledge and information on products and solutions

NMB Bank launches ‘Aatmanirbharta’ campaign (26.04.2016)

NMB Bank has launched its corporate campaign with the theme Aatmanirbharta. The campaign focuses on the need and importance for every individual and eventually the economy to be ‘self reliant’. It features projects that the Bank has financed over the years, ranging from agriculture to project financing which have not only changed the lives of its customers but influenced change at a macroeconomic scale. It re emphasizes the Bank’s focus on Micro, SME enterprises and entrepreneurship which form the crux for long term growth and sustainability of the economy.

“The crisis that the country went through post earthquake of 2015 and the subsequent fuel crisis left the economy crippled. With this background in perspective, the need for ‘self reliance’ for re construction of the economy and country is of paramount importance if the nation is to progress. This campaign seeks to encourage Nepalese to come together and work for the country to make itself self reliant and economically independent” said a statement issued by the bank.

NMB Bank’s CSR (21.03.2016)

NMB Bank organized a program for distribution of blankets and fruits at the “Buddhist Home for Aged (Buddha Bridhashram), Banepa. “The Buddhist Home for Aged” works towards providing care facilities for the elderly who have been dispelled by their children. The CSR event was organized as part of the Bank’s ongoing 20th Anniversary celebrations.

NMB Bank’s 20th Annual General Meeting (AGM) (15.02.2016)

NMB Bank organized its 20th Annual General Meeting (AGM) under the Chairmanship of Mr. Pawan Kumar Golyan, Chairman of the Bank, on 15 February 2016 at Nepal Administrative Staff College, Jawalakhel. The AGM decided to distribute 8 percent bonus share and 0.42 Cash Dividend for Tax provision from its profit of last fiscal year. The bank will keep other merged entities' profit on reserve.

Likewise, the 20th AGM of the bank has undisputedly selected/appointed a new Board of Director under the continued Chairmanship of Mr. Pawan Kumar Golyan. Representing the founder shareholders Pawan Kumar Golyan, Mr. Manoj Kumar Goyal and Mr. Romani Prasad Pathak have been selected; representing the General Shareholders Mr. Kamlesh Kumar Agrawal, Mr. Harischandra Subedi and Mr. Haribabu Neupane has been selected. Representatives from Sanchaya Kosh and FMO, Netherlands were also selected.

With an objective to stabilize itself in financial terms, the Bank went through a historic merger in this Fiscal Year 2071/072. As of end of Poush 2072, the total deposit of the bank is Rs 52.48 billion and total loan is Rs 44.06 billion. This move has established the Bank’s position as one of the leading commercial banks in the country, with a bigger capital base to serve its customers better in every aspect. NMB Bank has been providing services through a network of 69 branches, 7 extension counters and 44 ATM outlets.

NMB Bank’s CSR (18.03.2016)

NMB Bank organized a program for distribution of blankets and fruits at the “Buddhist Home for Aged (Buddha Bridhashram), Banepa. The“Buddhist Home for Aged” works towards providing care facilities for the elderly who have been dispelled by their children. The CSR event was organized as part of the Bank’s ongoing 20th Anniversary celebrations.

5th NMB Bank Heritage Walk 2016 (16.04.2016)

NMB Bank in association Kathmandu Metropolitan City Office organized the ‘5th NMB Bank Heritage Walk 2016’ on the occasion of World Heritage Day. The Bank has committed to pledge its support for the preservation of rich heritage sites as part of its Corporate Social Responsibility since the past few years. First initiated on the occasion of its 16th Anniversary, the Bank has been organizing the Heritage Walk in association of the Kathmandu Metropolitan City Office since the past four years. The sole purpose of this event was to raise awareness about the importance of preservation of our heritage sites among the local communities.

The event was inaugurated by Mr. Rudra Singh Tamang, Chief and CEO, Kathmandu Metropolitan City, Mr. Bhesh Narayan Dahal, Director General – Department of Archaeology, the Bank’s Chairman- Board of Directors, and representatives from Integrated Mobility Services Pvt Ltd the major sponsor for the event.

Speaking on the occasion, the Chief Guest congratulated the Bank for continuing its initiative through the years. He further stressed on the need for all walks of society to be involved in heritage preservation especially after the earthquake last year which has left numerous monuments across the country in shambles.

Likewise, Mr. Upendra Poudyal, CEO of the bank expressed the bank’s commitment to support the heritage preservation drive in the future as well and thanked all the participants, sponsors for their support towards the cause. The bank announced to work at renovating a heritage site/temple from the proceeds of the event.

The Heritage Walk route started from Babarmahal through Maitighar, Tripureshwor, Sundhara, New Road and finally assembled at Shiva Parbati Dubali, Basantpur, for the closing ceremony with participation of invited guests, bank’s executives, staff & media.